This watchdog blog, by journalist Norman Oder, offers analysis, commentary, and reportage about the $4.9 billion project to build the Barclays Center arena and 16 high-rise buildings at a crucial site in Brooklyn. Dubbed Atlantic Yards by developer Forest City Ratner in 2003, it was rebranded Pacific Park in 2014 after the Chinese government-owned Greenland Group bought a 70% stake in 15 towers. New York State still calls it Atlantic Yards. Contact: AtlanticYardsReport[at]hotmail.com

Thursday, January 07, 2010

So, after the stunning news yesterday that Forest City Ratner was the unnamed, unindicted "Developer No. 2" cited in a Yonkers corruption scandal, the developer issued a statement saying it had cooperated fully with federal prosecutors and "has been advised by the U.S. Attorney's Office that neither the company nor any of its employees is a target of the investigation."

Does that mean they're cleared? Not exactly.

The U.S. Attorney's office would not comment when I asked them to confirm the statement. LoHud.com reported that U.S. Attorney Preet Bharara "declined to comment on whether Forest City Ratner had broken the law by hiring Jereis or whether they were a target of the continuing investigation."

And, as I wrote, "not a target" could mean they're not a target now but could be in the future.

Following FCR's lead

Still, other than AYR and the local LoHud.com (home of the Journal-News), the press did not try to verify Forest City Ratner's claim. The New York Times dutifully printed FCR's statement, without adding, as the newspaper did in a 5/5/08 article on the investigation, that Forest City Ratner "partnered with The New York Times to build its new headquarters."

The Daily News and the Observer also quoted the FCR statement without question. (I couldn't find coverage in the Post.)

Cloud remains

But it's not like Forest City Ratner is left without a cloud over it. In the indictment, FCR is cited as agreeing to provide Zehy Jereis, the former head of the Yonkers Republican Party, a $60,000 consulting contract after he got Yonkers City Council Member Sandy Annabi once a fierce opponent of the Ridge Hill project, to change her vote.

A claim by the developer, unsupported by prosecutors, is not the last word.